Hyatt just announced some major changes to the World of Hyatt program. There’s some upside to the changes with regards to suite bookings but there’s also a major downside for cash + points redemptions. These new changes will come into effect on November 1, 2018, so it’s a good idea to be prepared for them now. Here’s what you need to know about these changes.
World of Hyatt Background
Hyatt is a standout hotel loyalty program because they offer some great redemption rates for properties and you can often get more value for Hyatt points than other hotel programs, such as Marriott, Hilton, IHG, etc.
Out of every hotel program that’s partnered with a major transfer program (Citi, Chase, Amex), Hyatt offers the most valuable redemptions on a consistent basis in my experience.
Another reason why Hyatt has stood out is because they’ve allowed you to book cash + points redemptions at very reasonable rates. Essentially, you’ve been able to purchase Hyatt points below their value to complete your award booking.
Well, now cash + points redemptions are not going to be as valuable as they once were because Hyatt is changing the way they work. In the past, cash + points redemptions would require half the required points price plus a fixed amount of cash.
Here’s what the cash + points redemptions chart looked like.
You’ll notice the cash co-pay was fixed which meant that you were essentially paying a fixed amount for half of the Hyatt points required for the stay. This amounted to paying as little as 1.2 cents per Hyatt point and allowed for valuable redemptions, which was great because many value Hyatt points at least at 1.5 cents per point.
World of Hyatt negative changes
Starting November 1, 2018, you will pay half the point requirement and half the standard rate price for cash + points redemptions. This means that you will be paying more money for these bookings and savings less cash and that your Hyatt points will not be worth as much.
Here’s an example of how the changes will work using the Park Hyatt Chicago.
As the program stands, you’d need to pay 12,500 Hyatt points (half of the normal price) and a cash co-payment of $150 to book a standard room at the Park Hyatt Chicago. This would be like paying 1.2 cents per Hyatt point.
But under the new program, you’ll need to pay half the Standard Rate which would be $187.50. So with the new program you’re having to pay 1.5 cents per point which is not as cheap as it was before.
So you’ll be paying more for Hyatt points in the future. You can also look at this change from the perspective of how the value of your points is affected due to the higher cash co-payment.
Using this same example and the $375 standard rate, under the old pricing system you could pay $150 and then use 12,500 points to cover $225 worth of the remaining price, which would be like getting 1.8 cents per point in value. But with the new pricing scheme you would pay $187.50 and then be using 12,500 points to cover $187.50 which comes out to 1.5 cents per point.
Thus, no matter which way you slice it, you have a devaluation.
It’s worth noting that if Hyatt used the lowest rate in the example below, you’d only end up paying $5 more in cash but instead they are basing the rate on the Standard Rate.
The positive changes
The new changes aren’t all negative, though, and here are some of the positive changes.
No more 3-night minimum
First, Hyatt is doing away with the 3-night minimum required to use points to book suites. Now you’ll be able to use your points to book suites for one night or longer, which is a welcomed change, especially for travelers like myself who often only stay two nights at properties.
New premium suites available
The big positive change is that you’re going to be able to book “premium suites” with points. The prices for these suites will be 2X the price of standard awards. This is pretty exciting news and offers a good option for folks who want to splurge for a few nights and enjoy a nicer suite.
But one has to wonder what will be considered a “premium suite” and how will it be distinguished from a “standard suite?” It will be very interesting to see how that goes and that could really alter the value of the program going forward.
Cash + points for suites
You’ll also be able to use cash + points redemptions to book standard and premium suites with the same type of pricing scheme — 50% of the Standard Rate. Again, depending on what suites qualify, I will be really interested to see what the cost of points becomes for these redemptions.
Upgrade potential
Hyatt is also going to offer a way to upgrade to both standard suites and premium suites on paid stays.
| Room Upgrade Award | Points Per Night |
|---|---|
| Regency Club®/Grand Club® Upgrade 1 | 3,000 |
| Suite Upgrade 2 | 6,000 |
| NEW: Premium Suite Upgrade2 | 9,000 |
Final word
These positive changes are nice and help to offset the gutting to points + cash a little but this is a definitely a devaluation for people who loved to maximize points with cash + points redemptions. Now, those deals won’t be quite as lucrative and you’ll need to shell out more cash.
For those who just liked to book standard free night awards, there’s really nothing to worry about. And you can now use your points for more types of suites and even upgrade if you want to. So for some, you could argue this isn’t really a devaluation at all.
Daniel Gillaspia is the Founder of UponArriving.com and the credit card app, WalletFlo. He is a former attorney turned travel expert covering destinations along with TSA, airline, and hotel policies. Since 2014, his content has been featured in publications such as National Geographic, Smithsonian Magazine, and CNBC. Read my bio.
